Big W is selling the classic Birthday Cake Cookbook for $10. Our price is $14.95. While I am disappointed that they are selling this for less than I can purchase the title, I am more frustrated that they are running a one week promotion on a title which will easily sell for the $14.95 RRP as we are seeing in our own newsagencies. We have plenty of big retailers in Australia at the moment who are so bereft of good retail skills that they think discounting is their only option. Pathetic and nuts.
I’d love to know from ACP how Big W is able to sell this cookbook for less than our buy price when newsagents account for 50% of all magazine sales in Australia and we pay our accounts on time – otherwise they cut us off. I bet that Big W has better terms than us.
all newsagencys should go and buy their amount supplied.then either sell them or return them, either way you will make a profit on both options
I have had these on back order with the supplier, for the last week, I know where I will go to get my stock ASAP.
The other bad thing about this is the perception of newsagents being expensive compared to other retailers for exactly the same product.
This industry seriously needs a voice with some clout to stop this kind of thing happening.
Once again support from ACP to its newsagent partners makes you want to do as Adam has said.
pack up all your ACP cook books and send them back ,quite simple do not support what does not support us !!but no one will do this and we continue to get walked all over time and time again . i am sending mine back as of tomorrow morning
Just because they are selling it for $10 doesn’t mean they have better terms than you.
I know for certain that on new release DVDs, there are titles they sell below cost. Unlike Fosters as you mentioned before – the distributors for the most part don’t mind as long as they are getting their standard wholesale price.
I’m not saying its fair – its just business.
It would be like saying newspapers are loss leaders for newsagents. The goal of a newsagent is to get people in the door to purchase higher margin product. For the newsagent it would be the cake cookbook – for BigW its something else
As with ALL customer service, for all it’s good work with newsagents it only takes one stunt like this to damage ACP’s image in the eyes of the people that keep it in business.
We will be less likely to help them out next time they want us to push ACP stock.
Gone is the premium space, Gone is the window posters promoting ACP mags, Gone is the extra stock it will be returned asap, and Gone is the good will.
Let Big W take up the slack.
Had a large diplay for this cook book have now removed it +the stock and replaced it with cook books from ABW. Just about every week Coles has a add on, on their mags ,makes me look silly .The big push into our mags has been on for sometime ,have now placed acp in a poorer spot. Mark should we now go to the ACCC as network sells to them at the some price or do they
Has the ACCC done anthing in the past ?
not sure . it is up to us to demonstrate that without us they have nothing !!
oh by the way is it the 20th yet
I really think taking down your displays, returning stock and any other petty measures will only affect your sales.Why believe they pay less than us,they probably don’t.Or if they do they would buy so many without sale/return options.
If there is no BigW close buy you can still sell them even if Big w is close not everyone goes there.
Keep the book in a high profile place and still sell what you have been.
Getting angry without the facts is really a waste of energy.You only hurt your own hip pocket.
Is it likely that The big 2 would be receiving rebates/kick backs to allow them to sell at ‘below cost’
I really do have my doubts that they would intentionally sell stock below cost without having their bums covered.
I don’t see this an an ACCC issue.
I suspect that Big W is not losing money. They may be settling at cost of a few cents above, but not losing money – once you account for the various contributions and subsidies which suppliers pay to be in their catalogues and on their shelves.
We have left our displays up promoting this title. Taking them down would be shortsighted – in any newsagency.
mary,
just curious, are you a newsagent?
I am an employee (management) of a newsagency business.I am responsible for the sales in my store so I will not take down a display or put magazines at the back of my store,if it is going to cost me sales.
I like to look at things without any emotion attached,I am lucky I guess as it wouldn’t be my house on the line if this business went bust so I may look at things differently.
While im doubtful that BigW would be selling this particular book below cost, they do intentianally sell products below cost on a regular basis. Its called a ‘loss leader’.
This isnt an ACCC issue. No competition or consumer laws have been broken.
In fairness to ACP they want their products on the shelves of major retailers (as most suppliers do). They need to pay rebates and cut their wholesale price to make that happen. They have no control over the minimum retail price that their product is sold at.
i will buy 100 copies from Big W and do early return to Acp. i will make $$$ yeah!!!
thanks for this info , i will go there tommorrow
i will make $121.25 , just like that:))))
Just out of curiosity eric, how much will Big W make from you buying those 100 copies ?
I have no idea of current margins on subsidised sales as I would suspect these will be for Big W.
Would they equal your $121.25 ?
Eric that is ridiculous. Network tracks supply to your business, your sales and your returns.
So run them as books ,they wont know and so what if they do ,do they care
after all according to them newsagent data is flawed. hahah
Just got mine from Big W